Bernanke a hit with investors

NEW YORK – Alan who?

By the time Ben Bernanke completed his debut before Congress as chairman of the Federal Reserve, economists were enthralled, investors were encouraged, stocks were higher and pulses on Wall Street were lower. The nervousness that had crackled over trading floors in recent weeks – fears that Bernanke wouldn’t be tough on inflation and concern that an academic like him couldn’t master Washington’s realpolitik – was swept aside.

“He not only was articulate in his views, but justified his views without making financial markets balk,” said Anthony Chan, chief economist at JP Morgan Private Client Services.

Bernanke displayed two marked contrasts to his predecessor: an ability to communicate in plain English and an unwillingness to tackle issues outside monetary policy. In some instances, he showed both at once. Asked if taxes were too high, he replied, “Compared to what?” Asked whether inequality should be considered when cutting taxes, he said, “These are value judgments. It’s what people have elected you to do, and clearly it’s your responsibility.”

That was a marked contrast to Greenspan, who has not been afraid to take a public stand on policy issues such as tax cuts.